United States District Court for the Central District of California Grants Grokster's Request for Summary Judgment against Motion Picture and Recording Industries

April 25, 2003

Today, the U.S. District Court granted Grokster’s request for summary judgment, denying the motion picture and recording industries request to shut Grokster down.

In his ruling today, U.S. District Court Judge Stephen Wilson, wrote, “Grokster and Streamcast are not significantly different from companies that sell home video recorders or copy machines, both of which can be and are used to infringe copyrights.” Judge Wilson further wrote, "It is undisputed that there are substantial noninfringing uses for (the) Defendants' software."

“We at Grokster are obviously very happy with the Judge’s decision.” stated Grokster’s President Wayne Rosso, “The Court recognized that our file-sharing software has numerous legal and beneficial uses. This opinion lifts the cloud the plaintiffs have attempted to cast over innovation and investment. It makes clear that innovators will not be held liable for creating or investing in new technologies. This ruling also means that the labels and studios cannot ban 21st-century technology in defense of their inefficient and outmoded 20th-century distribution models.”

About Grokster, Ltd.

Grokster (www.Grokster.com) is an advanced Peer-to-Peer File-Sharing program that enables users to share any digital file including images, audio, video, reports, documents, etc. Content developers and owners may now easily broadcast their files to a global audience through the Grokster Network. It is easy to publish your work: your family photos, home videos, academic reports, travel journal, diary, recipes, music from your own band - your imagination is the limit. The only thing you have to do is put your files into a folder on your own hard disk! Grokster accesses millions of online users through the FastTrack P2P Stack.